Outside Publication

Russian legal environment
Foreign investors, being generally
apprehensive of the perceived
inflexible nature of Russian law and
Russia’s unpredictable court practice,
prefer for transactions with a Russian
counterparty to be governed by
foreign law and to provide for international
arbitration. Such a trend is
completely understandable and international
participants
usually obtain the
comfort they require
by avoiding the murky
waters of the Russian
legal system. However,
when it comes
to the insolvency of a
Russian entity, it is impossible to bypass
Russian court proceedings.